October 19, 2025, Zurich, Switzerland: Gold has overtaken the euro to become the world’s second-largest reserve asset, as central banks continue to boost holdings amid record-high bullion prices. According to official data, gold now accounts for approximately 20 percent of global foreign exchange reserves, compared with the euro at 16 percent. The U.S. dollar remains the leading reserve currency at around 46 percent.
The Reserve Bank of India confirmed its gold reserves surpassed $100 billion for the first time, reaching $102.36 billion as of October 10. The value increase was driven by the surge in global gold prices, despite limited net purchases by the bank in 2025. India’s overall foreign exchange reserves declined to $697.78 billion, with gold now comprising 14.7 percent of the total its highest proportion in nearly three decades.
Global gold prices have risen sharply in 2025, with December futures trading above $4,300 per ounce. The rally has contributed to the increase in the value of existing central bank holdings, further elevating gold’s share in official reserves. Market data show that central banks continue to accumulate gold even at elevated price levels, contributing to the metal’s strong performance this year.
In West Africa, the Bank of Ghana reported an improvement in its foreign reserve position following the establishment of a state-run gold trading company in March. The initiative allowed the central bank to recover foreign currency revenue from gold exports that had previously bypassed the formal banking system. As a result, Ghana’s reserves were restored to cover approximately four and a half months of imports, strengthening the country’s external position.
World Gold Council tracks upward reserve trend
Recent monthly data shows that global central banks added a net 19 tonnes of gold to their reserves in August. This figure only accounts for reported acquisitions. Several analysts tracking central bank activity estimate that actual purchases, including unreported transactions, have exceeded 800 tonnes over the 12-month period ending in June 2025. A mid-year survey conducted by the World Gold Council revealed that more than three-quarters of participating central banks anticipate an increase in their gold holdings over the next five years.
In parallel, many institutions indicated plans to reduce exposure to U.S. dollar-denominated assets, though specific policy actions have not been disclosed publicly. The European Central Bank reported that gold officially surpassed the euro in share of global reserves at the end of 2024. This marked the first time gold has held the second-largest position among reserve assets since the 1990s.
Central bank reports indicate that this trend has continued through 2025, reinforced by both valuation effects and ongoing acquisitions. The shift in reserve composition comes at a time of heightened scrutiny of global monetary stability. Several countries have taken steps to diversify their reserve portfolios in recent years, and gold’s performance has reinforced its role in sovereign asset allocations.
Global monetary dynamics shifting toward gold
The World Gold Council has tracked steady buying from both emerging and developed economies, with consistent participation from Asia, the Middle East, and Africa. Recent central bank activity underscores the sustained demand for physical gold in official sectors. While monthly purchases vary, the broader trend reflects a growing presence of gold in the global financial system.
Central banks remain among the most consistent buyers of gold worldwide, supporting bullion markets alongside investment and industrial demand. With global reserves surpassing $12 trillion in total, the reallocation towards gold has reshaped the composition of sovereign holdings. Although the U.S. dollar remains dominant, the increased prominence of gold marks a significant development in global reserve management. – By EuroWire News Desk.